Quarterly Bulletin
Factor Inputs Articles
| 2007 Q4 | The macroeconomic impact of higher energy prices on the UK economy  (670k)(By Richard Barwell of the Bank's Conjunctural Analysis and Projections Division and Ryland Thomas and Kenny Turnbull of the Bank's Structural Economic Analysis Division.) This article explores the macroeconomic impact of the rise in energy prices since 2004. The article discusses the various channels through which rising energy prices are likely to influence the degree of inflationary pressure in the UK economy. Rising energy costs put upward pressure on the prices of energy-intensive goods and services, and can affect both aggregate demand and potential supply. The adjustment of prices and quantities in the labour market are particularly important in this regard. Ultimately though the impact on inflation will depend on monetary policy and the behaviour of inflation expectations. Some past episodes in which energy prices increased sharply preceded a marked deterioration in the macroeconomic environment. The evidence so far suggests a more muted impact on the economy than in these previous cases. |
| Spring 2004 | Measuring
total factor productivity for the United Kingdom
(99k) (by Charlotta Groth, Maria Gutierrez-Domenech and Sylaja Srinivasan of the Bank's Structural Economic Analysis Division). A good understanding of productivity growth is important for understanding aggregate supply capacity, and so for the conduct of monetary policy. To understand the sources of supply capacity well, it is important to measure output and factor inputs correctly. This article summarises recent and ongoing research at the Bank of England on improved measures of factor inputs. This work explicitly accounts for changes in the quality of these inputs and for the flow of services available from them, as well as for the costs of adjusting the level and utilisation of the inputs over time. This research was presented at a workshop on 'measuring factor inputs' held at the Bank of England in December 2003. |
